AirTrunk commits $30B to build 5GW of AI data centers in India

AirTrunk, a data center operator backed by Blackstone, announced plans on Thursday to invest an impressive $30 billion in India by the year 2030. This significant investment marks a surge in commitments from various technology and infrastructure companies eager to boost computing capabilities in the region. The Australian firm aims to create 5 gigawatts of new data center capacity in India, representing one of the largest investments in the country's digital infrastructure sector to date. AirTrunk made its entry into the Indian market earlier this year through the acquisition of Lumina CloudInfra. This commitment highlights India's increasing attractiveness as a hub for AI infrastructure, as tech giants and investors look to broaden their computing reach. According to research from Bernstein, data center capacity in India is set to soar to approximately 8GW by 2030, rising from about 1.5GW currently. The Indian government has actively encouraged investments in AI infrastructure. Earlier this year, it offered tax exemptions to foreign cloud providers until 2047 for services sold abroad, provided those operations are based in Indian data centers. AirTrunk has already commenced preparations for its expansion within India. Recently, Maharashtra Chief Minister Devendra Fadnavis announced via a post on X that the state had signed a letter of intent regarding land allocation at the Raigad Pen Growth Center, where AirTrunk plans to establish a 3GW data center, with an investment of around ₹2 trillion (approximately $21 billion). Currently, AirTrunk has a development pipeline of approximately 600MW across major cities including Mumbai, Chennai, and Hyderabad. There has been no clarification from the company on whether the Raigad project will fulfill most of the anticipated 5GW capacity or if there are plans for additional facilities elsewhere in the country. This announcement follows a meeting between AirTrunk's CEO Robin Khuda and Prime Minister Narendra Modi, who remarked on X that this investment would bolster India’s status as a global center for cloud computing and artificial intelligence. AirTrunk is not alone in its venture; it joins a growing roster of companies, including Amazon, Google, Microsoft, OpenAI, and Uber, all of which have unveiled significant investments in cloud and AI infrastructure within India. Domestic firms such as Reliance Industries, Adani Group, and TCS are also setting ambitious targets to expand data center capabilities. However, the rapid expansion of data centers presents challenges, as they require substantial resources such as electricity, water, and land. Industry experts have identified potential resource constraints, especially in terms of power supply. Deloitte forecasts that data center expansions in the Asia Pacific may necessitate additional tens of terawatt-hours of electricity by the decade’s end. Khuda emphasized that AirTrunk’s investment strategy is supported by government initiatives, a skilled workforce, and access to renewable energy resources.